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Notice the following on the weekly chart:
-- Prices have dropped nearly 60% since the market top near $1450/bbl. In addition, this drop occurred over a four month period. That's not an orderly drop; that's a collapse in prices.
-- Prices have moved through several technically important support levels before settling at their current price
-- The 10 week SMA has moved through the 50 week SMA
-- The 20 week SMA is about to move through the 50 week SMA
-- Prices are below all the SMAs
-- All the SMAs are moving lower
-- The market is technically oversold right now
Bottom line: this is a bearish chart. However, I would expect a bear market rally fairly soon based on the massive sell-off in the last three months and the technically oversold reading on the MACD
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Notice the following on the daily chart:
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices have been dropping for four months
-- Prices used the 20 day SMA as upside technical resistance
-- The market is technically oversold right now
Bottom line: this is a bearish chart, but it appears the market may be heading for a bear market rally. The market has consolidated over the last week or so, the MACD has bottomed and is rising and the RSI has already started to move higher. In addition, the weekly chart is also in a good position to make a bear market rally.
